Agentic AI Reshapes Property, Casualty Insurance Operations
Insurers apply AI agents to more advanced functions, adapt operating models to ensure well-governed technology transitions, ISG Provider Lens® report says
STAMFORD, Conn.–(BUSINESS WIRE)–
Property and casualty insurers worldwide are redesigning operations around AI-enabled decision workflows and adaptive operating models, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® global Insurance Services – Property and Casualty (P&C) BPO report finds that insurers are shifting automation from process-focused operations to decision-centric models as they deploy agentic AI for underwriting, claims and customer service tasks. Rather than replacing existing core systems, many organizations are modernizing through orchestration layers that connect legacy platforms with AI-based systems, allowing them to improve operational performance while minimizing implementation risk and disruption.
“Property and casualty insurers are applying AI where it can automate business decisions without the need for top-to-bottom transformation,” said Dennis Winkler, director, Insurance, at ISG. “Organizations are combining agentic systems with human expertise to improve efficiency while preserving the judgment required for complex underwriting and claims activities.”
Enterprises are redesigning insurance operations to handle growing workloads without proportional increases in headcount. Many are using agentic AI for routine workflow segments, including pre-bind submission triage and early-stage claims processing, allowing skilled employees to focus on complex evaluations and customer interactions. This approach improves productivity while helping insurers manage higher claim volumes and surge events that make capacity planning difficult.
As AI adoption expands, enterprises are prioritizing the ability to operationalize technology as well as deploy AI tools. They increasingly seek providers that combine AI expertise with data extraction from unstructured documents, orchestration across multiple systems and practical controls for production environments. These capabilities help insurers integrate new technologies with existing operations while reducing implementation complexity.
Insurers are also adapting operating models to support global growth that requires responding to diverse regional requirements. Many organizations are adopting delivery approaches that enable expansion into new markets without building large local compliance teams and that preserve high-quality multilingual customer experiences. As agentic AI performs more decision support, insurers are also carrying out complex, ongoing skills transitions, redeploying experienced employees toward oversight, risk evaluation and other high-value responsibilities, ISG says.
“Agentic AI is most valuable when it complements experienced insurance professionals instead of replacing them,” said Ashish Jhajharia, lead author of the report. “Providers that combine AI integration expertise with scalable operating models help enterprises modernize operations while preparing their workforces for more strategic roles.”
The report also explores other trends affecting global P&C insurance BPO services, including the growing adoption of globally standardized, locally adaptable delivery models and the operational pressure of claims from more frequent catastrophic events.
For more insights into the challenges faced by property and casualty insurance enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The report evaluates the capabilities of 38 providers in one quadrant: Insurance Services – Property and Casualty (P&C) BPO.
The report names Accenture, Charles Taylor, Cognizant, Davies Group, EXL, Genpact, Patra Corporation, ReSource Pro, Sutherland, TCS, TP, WNS, part of Capgemini, and Xceedance.
In addition, HCLTech and Infosys are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in the quadrant.
In the area of customer experience, Sutherland is named the global ISG CX Star Performer for 2026 among insurance services providers. Sutherland earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from EXL Services, Sutherland and WNS, part of Capgemini.
The 2026 ISG Provider Lens global Insurance Services – Property and Casualty (P&C) BPO report is available to subscribers or for one-time purchase on this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260723012283/en/
Press Contacts:
Laura Hupprich, ISG
+1 203-517-3132
[email protected]
Erik Arvidson, Matter Communications for ISG
+1 978-518-4542
[email protected]
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